Bombardier negotiating sale of transportation division to Alstom

Bombardier has announced a strategic decision to focus exclusively on business aviation and plans to accelerate its deleveraging through the sale of its rail business. Going forward, we will focus all our capital, energy and resources on accelerating growth and driving margin expansion in our market-leading $7.0bn business aircraft franchise, said Alain Bellemare, President and Chief Executive Officer, Bombardier Inc. With a stronger balance sheet after the completion of this transaction, an industry-leading portfolio of products, a strong backlog, and a rapidly growing aftermarket business, we will compete in this market from a position of strength. Bombardier has signed a Memorandum of Understanding with Alstom SA and the Caisse de dépôt et placement du Quebec la Caisse for the sale of its Transportation business to Alstom. Under the transaction, Bombardier and la Caisse will sell their interests in Bombardier Transportation to Alstom on the basis of an enterprise value of $8.2b.